Climate

InsuResilience Investment Fund

Investing in climate change adaptation

Climate change is one of the most serious and threatening issues facing the world today, and many developing countries are especially vulnerable to its effects. Climate change will continue to present food and water security concerns, it will destabilize agricultural economies and communities, and will reverse decades of progress out of poverty for millions of people if unaddressed through both policy and private sector efforts.

Climate related threats affect low income individuals most

The economic cost of climate change and weather related events presents a huge financial burden, especially for the world’s poorest communities. Households with low-incomes are the most vulnerable to these events as they have few tools to manage risk or savings to fall back on. Consequently, when faced with extreme weather fluctuations such as droughts, floods or storms, these households may be forced to resort to desperate coping strategies such as selling assets, reducing food consumption or taking children out of school.

Building the resilience to the evolving threats of climate change

Climate insurance reduces the vulnerabilities of individuals with low-income to climate threats by providing insurance as a risk management instrument. Crops, livestock and other sources of income and assets of micro-entrepreneurs and individuals with low-income can be insured. Individuals with low income are thus better equipped to absorb and recover from the financial burden of weather related shocks.